Asset & Sale Details
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Commissions, closing costs, agent fees
Tax Profile
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Salary, wages, business income
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Only for primary home sale
Capital Gains Tax Owed
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Capital Gain
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taxable profit
Tax Rate
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federal rate applied
Net Proceeds
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after tax
Tax Calculation Detail
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2025 Capital Gains Tax Rates
The federal capital gains tax rate depends on how long you held the asset and your total taxable income. Long-term rates (assets held over 1 year) are significantly lower than short-term rates.
Long-Term Capital Gains Rates (2025)
| Filing Status | 0% Rate | 15% Rate | 20% Rate |
|---|---|---|---|
| Single | Up to $48,350 | $48,351–$533,400 | Over $533,400 |
| Married Filing Jointly | Up to $96,700 | $96,701–$600,050 | Over $600,050 |
| Head of Household | Up to $64,750 | $64,751–$566,700 | Over $566,700 |
⚠️ NIIT: High earners (income over $200K single / $250K MFJ) also owe an additional 3.8% Net Investment Income Tax on capital gains, pushing the top effective rate to 23.8%.
Frequently Asked Questions
How do I avoid or reduce capital gains tax?
Key strategies: (1) Hold assets over 1 year to qualify for lower long-term rates. (2) Tax-loss harvesting — sell underperforming investments to offset gains. (3) Use tax-advantaged accounts like IRAs and 401(k)s where gains aren't taxed annually. (4) Primary home exclusion — up to $250,000 ($500,000 MFJ) of gains on your primary residence are excluded if you lived there 2 of the past 5 years. (5) Donate appreciated assets to charity — you avoid capital gains tax and get a deduction for the full fair market value.
Is cryptocurrency taxed as capital gains?
Yes. The IRS treats cryptocurrency as property. Every time you sell, trade, or use crypto to purchase goods/services, it's a taxable event. Short-term gains (held ≤1 year) are taxed as ordinary income; long-term gains (held >1 year) get preferential rates of 0%, 15%, or 20%. Receiving crypto as payment, mining rewards, or staking rewards is taxed as ordinary income at the fair market value on the date received.
What is the primary home sale exclusion?
Under IRS Section 121, you can exclude up to $250,000 ($500,000 if married filing jointly) of capital gains from the sale of your primary home. To qualify, you must have owned and lived in the home as your primary residence for at least 2 of the 5 years before the sale. This is one of the most valuable tax breaks available — a couple who bought a home for $300K and sells for $800K pays zero federal capital gains tax on the $500K profit.
Do I also owe state capital gains taxes?
Most states tax capital gains as ordinary income. State rates range from 0% (Florida, Texas, Nevada, Washington) to 13.3% (California). California taxes short and long-term gains at the same rate as ordinary income, making it one of the highest combined rates in the world (up to 37% federal + 13.3% state = 50.3% marginal rate for top earners). Our calculator shows federal tax only — add your state rate for a complete picture.
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